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The park occupies part of the site where William Wirt Rice (1833–1891)[4] built a tannery in 1885 at the mouth of what came to be called Tannery Creek. The tannery occupied 180 acres that were eventually divided between Petoskey State Park and the commercial district on U.S. Highway 31. At its peak, the tannery employed some 200 workers and processed over 1000 hides—primarily buffalo—per day.[5] The tannery closed in 1952, and its buildings were torn down in 1963.[6] The City of Petoskey purchased a portion of the tannery's land north of Tannery Creek in 1934 and created the Petoskey Bathing Beach. The state of Michigan purchased the beach in 1968, took title in 1969, and opened the park's campground in 1970.[3]